Property insurance provides protection against most risks to property, such as fire, theft and weather damage. Replacement cost coverage pays the cost of replacing your property regardless of depreciation or appreciation. Actual cash value coverage provides for replacement cost minus depreciation
Property insurance should cover:
• Buildings: The purpose of property insurance for a business is to provide critical financial assistance in the event of a loss, so that the enterprise can continue to operate with as little disruption as possible. You can choose to insure your buildings at their "actually cash value"—what they are worth—or their "replacement cost"—what it would cost to replace them with new construction.
• Building contents: This would include such things as machinery, computers, raw materials or inventory.
• Property of others that is in your care, custody and control to the extent you are legally liable for that property,
• Business Income and Extra Expense: Every day you are unable to operate your business is a day of lost income, for you personally and for the business. If the property damage or loss prevents you from providing products or services to your customers or clients, they may go elsewhere and many of them may never return. If you are to keep your employees, you must continue to pay their wages, even when the business is generating much less than normal income.